China seals currency swap deal with cash-strapped Argentina | Asia Pacific

China seals currency swap deal with cash-strapped Argentina

China seals currency swap deal with cash-strapped Argentina

Updated 1 August 2014, 13:08 AEST

China is strengthening financial ties with Argentina as Buenos Aires grapples with its second default in just over a decade following an adverse ruling by the US Supreme Court.

Argentina is technically bankrupt, after it failed to pay a group of private equity funds 1.3 billion US dollars.

The funds were suing for returns on speculative investments made during Argentina's 2001 economic collapse.

Argentina is now seeking to move its foreign currency reserves from US dollars to a multi-denomination currency basket, after sealing a deal with China for an 11 billion dollar currency swap.

Reporter: Joel Keep

Speakers: Micheal Cohen, author and former World Bank official; Fatima Mello, researcher at the Brazilian NGO FAZI

Contact the studio

Got something to say about what you're hearing on the radio right now?

Text/SMS
Send your texts to +61 427 72 72 72

Tweets
Add the hashtag #raonair to add your tweets to the conversation.

Email
Email us your thoughts on an issue. Messages may be used on air.